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Phreesia
(NYSE:PHR)
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Rating:66Neutral
Price Target:
$10.50
▼(-10.18% Downside)
Action:Reiterated
Date:09/06/26
PHR’s score is driven primarily by improving financial performance, led by strong and rising operating/free cash flow and a clear shift into positive profitability versus prior heavy losses. The earnings call supports this with reaffirmed FY2027 guidance, EBITDA margin expansion, continued positive cash flow, and debt reduction. Offsetting these strengths are a relatively weak short-term technical trend (price below 20D/50D with subdued momentum) and a rich valuation (P/E ~63.5), which increases sensitivity to any growth or margin disappointments.
Positive Factors
Cash Generation
Strong and rising operating and free cash flow indicate that Phreesia’s platform is increasingly converting revenue into internally generated funds. If sustained, this improves financial resilience, supports product investment, and gives management greater flexibility to reduce debt without relying heavily on external capital.
Negative Factors
Thin Profitability
Despite the recent earnings inflection, Phreesia’s profit margins remain narrow relative to its revenue base. Small changes in growth, pricing, or operating costs could therefore materially affect net income, limiting the cushion available if execution weakens during the next two to six months.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Strong and rising operating and free cash flow indicate that Phreesia’s platform is increasingly converting revenue into internally generated funds. If sustained, this improves financial resilience, supports product investment, and gives management greater flexibility to reduce debt without relying heavily on external capital.
Read all positive factors
Phreesia Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breakdown of revenue across software subscriptions, payment services, and professional services, revealing which parts of the business drive growth and margins. Shifts between segments indicate strategic progress—such as moving toward higher-margin software—or increasing reliance on lower-margin services.
Breakdown of revenue across software subscriptions, payment services, and professional services, revealing which parts of the business drive growth and margins. Shifts between segments indicate strategic progress—such as moving toward higher-margin software—or increasing reliance on lower-margin services.
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The Fly
The FlyPhreesia (PHR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$670.99M
Dividend YieldN/A
Average Volume (3M)685.75K
Price to Earnings (P/E)62.8
Beta (1Y)1.14
Revenue Growth12.93%
EPS GrowthN/A
CountryUS
Employees1,789
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.17
Shares Outstanding62,070,946
10 Day Avg. Volume590,657
30 Day Avg. Volume685,747
Financial Highlights & Ratios
PEG Ratio-3.35
Price to Book (P/B)2.38
Price to Sales (P/S)1.67
P/FCF Ratio11.85
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue1.31
Enterprise Value/Gross Profit2.06
Enterprise Value/Ebitda11.85
Forecast
1Y Price Target
$13.33Price Target Upside14.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)0.3
Revenue Forecast (FY)$515.75M
Phreesia Business Overview & Revenue Model
Company Description
Phreesia, Inc. offers a comprehensive, cloud-based software-as-a-service (SaaS) and payment platform specifically designed for the healthcare industry in the United States and Canada. Its flagship Phreesia Platform streamlines the patient intake p...
How the Company Makes Money
Phreesia generates revenue primarily through (1) subscription/usage-based fees paid by healthcare providers for access to and use of its software platform and related modules, and (2) fees from life sciences companies for marketing and patient eng...
Phreesia Earnings Call Summary
Earnings Call Date:Sep 02, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Dec 09, 2026
Earnings Call Sentiment Positive
The call was strongly constructive, with 10% year-over-year revenue growth, substantial adjusted EBITDA expansion, positive net income for the fifth consecutive quarter, continued positive cash flow, more than $23 million of debt reduction, and reaffirmed fiscal 2027 guidance. AccessOne, Provider Connect, the GLP-1 campaign, and AI initiatives showed encouraging momentum. The main challenges were sequential declines tied to payment-processing seasonality, provider economic strain, pricing moderation, and some earlier volume weakness beyond seasonality.Positive Updates
Revenue Growth in Line with Expectations
Second-quarter revenue was $129.5 million, up 10% year-over-year, with revenue growth and profitability expansion described as in line with expectations.
Negative Updates
Sequential Revenue Decline from Payment Seasonality
Total revenue declined approximately 1% sequentially from the first quarter, driven primarily by legacy payment processing revenue. Management noted that payment processing revenue is typically highest in the first fiscal quarter because of health plan deductible resets.
Read all updates
Q2-2027 Updates
Positive
Negative
Revenue Growth in Line with Expectations
Second-quarter revenue was $129.5 million, up 10% year-over-year, with revenue growth and profitability expansion described as in line with expectations.
Read all positive updates
Company Guidance
For fiscal 2027, Phreesia is maintaining its revenue outlook at a range of $510 million to $520 million, including approximately $37 million of contribution from AccessOne and no additional revenue from potential future acquisitions completed between now and January 31, 2027; adjusted EBITDA guidance remains at a range of $125 million to $135 million, with the restructuring plan expected to result in meaningful annualized run rate expense savings, and AHSC growth expected in the mid-single-digit percentage range and total revenue per AHSC growth in the low single-digit percentage range.Phreesia Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 507.79M | 480.59M | 419.81M | 356.30M | 280.91M | 213.23M |
| Gross Profit | 322.68M | 326.47M | 284.88M | 232.29M | 171.64M | 131.84M |
| EBITDA | 56.12M | 29.47M | -25.58M | -104.00M | -148.95M | -92.30M |
| Net Income | 10.45M | 2.31M | -58.53M | -136.88M | -176.15M | -118.16M |
Balance Sheet | ||||||
| Total Assets | 646.98M | 663.79M | 388.42M | 370.33M | 370.06M | 494.48M |
| Cash, Cash Equivalents and Short-Term Investments | 72.94M | 73.83M | 84.22M | 87.52M | 176.68M | 313.81M |
| Total Debt | 67.95M | 102.45M | 17.80M | 11.98M | 9.18M | 15.80M |
| Total Liabilities | 275.13M | 326.58M | 123.61M | 118.88M | 82.24M | 77.20M |
| Stockholders Equity | 371.85M | 337.21M | 264.81M | 251.45M | 287.82M | 417.28M |
Cash Flow | ||||||
| Free Cash Flow | 77.51M | 67.71M | 8.29M | -57.48M | -116.33M | -105.52M |
| Operating Cash Flow | 91.38M | 78.81M | 32.38M | -32.38M | -90.12M | -74.71M |
| Investing Cash Flow | -122.31M | -161.88M | -24.09M | -39.67M | -26.20M | -65.23M |
| Financing Cash Flow | 7.46M | 72.85M | -11.49M | -17.11M | -20.80M | 234.97M |
Phreesia Technical Analysis
Neutral
11.69
Price Trends
11.05
Negative
10.52
Positive
11.28
Negative
Market Momentum
-0.05
Negative
56.06
Neutral
92.92
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHR, the sentiment is Neutral. The current price of 11.69 is above the 20-day moving average (MA) of 10.26, above the 50-day MA of 11.05, and above the 200-day MA of 11.28, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 56.06 is Neutral, neither overbought nor oversold. The STOCH value of 92.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PHR.
Phreesia Risk Analysis
Phreesia disclosed 57 risk factors in its most recent earnings report. Phreesia reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Phreesia Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $5.12B | 37.06 | 3.59% | ― | 19.23% | 44.44% | |
66 Neutral | $670.99M | 62.78 | 3.01% | ― | 12.93% | ― | |
63 Neutral | $84.99M | 28.65 | 16.56% | ― | 15.07% | ― | |
55 Neutral | $216.01M | -2.66 | -33.27% | ― | -19.00% | 40.98% | |
53 Neutral | $133.20M | -0.48 | -129.70% | ― | -7.54% | -143.41% | |
52 Neutral | $456.76M | -0.90 | -99.16% | ― | -4.50% | -184.71% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
PHR
Phreesia
10.82
-11.42
-51.35%
CCLD
CareCloud
1.94
-1.29
-39.94%
EVH
Evolent Health
4.25
-3.43
-44.66%
HCAT
Health Catalyst
1.75
-0.96
-35.42%
AMWL
American Well
12.43
6.60
113.21%
WAY
Waystar Holding Corp.
26.65
-9.51
-26.30%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.